Is it smart to invest in SMRAT?
Though $FSN will likely always be my main holding with all the potential there yet to be unleashed (especially now when Finance.Chainge is about to be rolled out), I do think it is a good idea to look at other projects and invest in small amounts in something else if you see value there.
Something that interests me is good tokenomics, and the question of whether tokenomics alone can yield success without any distinct use-case. In general I’d say that most of crypto really has failed at adoption, but still managed to gain massive value, sometimes for inexplicable reasons.
$SMRAT is a relatively new crypto with very clever tokenomics, an engaged community, is kind of both on the “animal coin” and “moon coin” wagons at the same time and is slowly building up their image to look more and more impressive.
I am writing this now and recommending it, because the evaluation is currently very low. The reason for it, may currently be that as with a lot of these new coins on BSC, their fates are tied to BNB (and BNB just crashed a lot along with most other stuff) since they’re based on BSC and PancakeSwap. This needs to be kept in mind, because SMRAT is not a short term investment, it is more than anything a hodler coin. If you want to buy low and sell high, you need a 20% gain to break even.
That sounds horrible right? If you’re a trader, it certainly is, but if you’re a hodler it shouldn’t matter much, because those 20% taken from the profit-taking trader is distributed in a way that benefits the hodlers.
What happens specifically is that in every trade 10% is taxed, 2% is used to distribute more SMRAT to all SMRAT hodlers (including burn adresses), 4% is used to increase the liquidity of SMRAT/BNB on PancakeSwap (I’ll get back to what happens here specifically, because it’s very important) and 4% goes into a BNB reward pool, that $SMRAT hodlers can pillage a portion from every week (there’s a lot of rules tied to the reward pool, benefiting small hodlers over traders and large buyers. In general, the more selling/buying you do, the longer you need to wait to claim rewards. I won’t focus on this so much, but one of the points of the tokenomics is to benefit the small “rats” and not the “large whales”. If you get a bag of just below 100 bil SMRAT in a single buy and just hodl and claim, you’re in the category that benefits the most from this).
So with the basics down I want to focus on why I’m writing and recommending this. SMRAT was previously known as MRAT and as it moved from MRAT to SMRAT something, in my mind, absolutely incredible was done. In MRAT the liquidity was said to be locked for 6 months and in my mind I immediately figured, “Alright, so this coin is only good for a few months. It’s probably a good idea to get in now, and then get out well ahead of this 6 month limit.” I’m sure others that were looking at it was also thinking exactly this, because if the liquidity was only locked 6 months, what happens after when it’s no longer locked? Will the MRAT team just rug it, and even if they won’t everyone will probably sell at that time in caution that they will.
But MRAT and its mere 6 months is no longer in play, because in SMRAT the liquidity has been burnt! This means no one can ever touch it. Not the team, not anyone. Rugging is impossible. And it wasn’t just the current liquidity that was burnt, but the liquidity taxed in every single transaction is actively burnt, actively building a bigger and bigger SMRAT/BNB liquidity pool that nobody ever can touch. You can see it for yourself here. And please verify for yourself that 0x90b4320d89abc65b7129043000db6c1ecd7e24e6 is the relevant PancakeSwap liquidity contract tied to the SMRAT contract 0x68590a47578e5060a29fd99654f4556dbfa05d10.
To phrase this in another way. I guess you can say that SMRAT is currently trading on an exchange that absolutely nobody controls. With the Liquidity being burnt, it is truly a true trustless DEX (and no, I don’t mean PancakeSwap here. I mean only the 0x90b4320d89abc65b7129043000db6c1ecd7e24e6 liquidity contract).
With the taxing and with the liquidity being burnt, it means that regardless of team actions and market sentiment, as more trading is done, more SMRAT will get burnt and the liquidity pool will keep on growing. Therefore I don’t see how it could be a loser in the long run (at least against BNB). It simply seems impossible.